“Covid has hit the balance sheet of our organization” – F1 CEO Stefano Domenicali has provided an optimistic financial update for the 2021 season, and beyond.
The pandemic hurt Formula 1 hard last season, with iconic teams like Williams and McLaren struggling the most. For this season, the new CEO Stefano Domenicali has some positive news, informing of budgetary improvements vis-a-vis 2020.
“Financially, as we have seen, Covid has hit the balance sheet of our organization because no one would not be hit by what has happened to our business. But it is solid enough. I can already say that what has been the plan in terms of budget this year is already a much better situation than what we had last year.
“Therefore, unless there is something that is catastrophic that could happen, that we are ready to fight, of course, we have proved in the past that we can recover and the idea is to be back to normal business by the end of the season in terms of turnover.”
We look forward to welcoming Stefano Domenicali back to the Formula 1 paddock as its President and CEO.
We also warmly thank Chase Carey for his extraordinary contribution to our sport in such a pivotal era, overseeing the successful introduction of the budget cap and… [1/3] https://t.co/OpR1ayJkxn
— Alpine F1 Team (@AlpineF1Team) September 25, 2020
Stefano Domenicali with the pros of the F1 budget cap
The $145m budget cap is set to be implemented for this season of Formula 1. This will help smaller teams like Alfa Romeo, Haas, and Williams to become more competitive and hopefully compete for the midfield sport.
“I think that with the budget cap, plus the idea of bringing in a similar approach with the power unit, this will help the factory spend of the teams behind. That means whilst the teams were unsure of how much money was needed to be competitive, it is much clearer now.